A crushing wave of Crude oil production is threatening prices' two year extension with barrels currently testing the $62.5 level after retreating from the $75 level a month ago after the US' announcement of Iran oil-buying sanction waivers. US, Saudi Arabia, and Russia are all producing Crude at a record pace, and prices are now facing a risk of getting pressured by oversupply, along with a last-minute waiver system being offered by the US to allow allies to continue importing Iranian oil.
US Crude oil prices continued to move to the downside breaking the $63.5 support level and entering into oversold zone. The price is currently testing the $62.5 level with a slight divergence between the momentum and the price. A downward extension towards the $62 level could take place before we see a correction and a retest of the $63.5 and $64.77 levels.
Support: 62.98 / 61.84
Resistance: 64.65 / 65.83